What do you do when your mortgage broker lies to you about your refinance?

Working with a mortgage company to refinace my home and the agent keeps telling me not to worry, we will close guarnateed. Now after a month and we still havent closed, we havent made a house payment in 2 months because he told us not to, and now the loan may not close because we are late with the mortgage payment. What do we do?

By | 2013-08-26T07:22:55+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|7 Comments

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  1. smilin1 August 26, 2013 at 10:40 AM - Reply

    Lenders are required to give you written information pertaining to your loan called a “Truth and Lending Statement”. You should have received this prior to closing your loan. This should outline your cost estimates and show information about your potential loan.

    If you have a problem, I would start with the manager in charge of the office of the mortgage broker. If that does not work, contact the agency in your state that licenses mortgage brokers and file a complaint. You can also contact the Better Business Bureau for your area to file a complaint.

    In the meantime keep up with all payments on your home. Your home equity is at risk if you don’t.

  2. lindaleology August 26, 2013 at 9:59 AM - Reply

    You do everything possible. File the complaint with FTC, contact the Better Bissnes Bura, and get a lawyer and press charges, and sue him for every penny he cost you or lied to you about, or sue him for all he is worth. Make sure you have solid evidence before you report him or sue him!

  3. WPS_1998 August 26, 2013 at 9:37 AM - Reply

    – Always, always, always, keep your existing loan payments current!
    – Your missed payments have probably hurt your credit score too much for the loan he had in mind. Most home loans are bundled together by banks and sold as a block on the secondary market, so they must follow specific Fannie Mae-Freddie Mac guidelines in reqards to credit scores and other qualification issues. Find a local lender that does not package and sell their loans and so does not have to follow these guidelines. A small community bank, for example. Explain to them what happened and they may overlook any recent credit score problems resulting from this situation.
    – Report the Mortgage broker to the Better Business Bureau, and the State Real Estate Licensing Board as Mortgage Lenders in most states have to have a Real Estate License.

    Good luck!

  4. farrajrealty August 26, 2013 at 8:59 AM - Reply

    Please make your current mortgage payment AS SOON AS POSSIBLE. You can never count on a Broker to close on time. Your credit score might have dropped by now because of your late mortgage payments. It will become difficult for you to refinance with mortgage lates reporting on your credit report. I’d suggest that you make your mortgage payments and threaten to cancel the refinance if the Broker does not close your loan by the end of the month.

  5. James D August 26, 2013 at 8:40 AM - Reply

    This individual also has to be licensed to do business in your state. You may want to contact your state’s Attorney General’s office to find out what your recourse is.

  6. Avi August 26, 2013 at 8:20 AM - Reply

    Best advice I can give you is to make sure everything the broker asks you to do have him put it in writing. By having him put it in writing you may have grounds to sue just in case things go bad. In my opinion, you should continue to make payments on your mortgage, technically, you are still responsible for it.

    I’d consult a lawyer to see what your rights are.

  7. Glenn_11 August 26, 2013 at 7:45 AM - Reply

    File a complaint with the FTC
    Use the link below

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